The upcoming OSSSC RI, ARI, Amin, SFS, and ICDS Supervisor exams require candidates to be well-versed in various subjects, including economy-related topics. To help you prepare effectively, we’ve compiled a list of the top 30 Economy Multiple Choice Questions (MCQs) along with answers. These questions cover a range of economic concepts and will be beneficial for your exam preparation.
Top 30 Economy MCQS For OSSSC RI, ARI, Amin, SFS, ICDS Supervisor
Continue practicing these questions to enhance your economic knowledge and boost your chances of success in the OSSSC RI, ARI, Amin, SFS, and ICDS Supervisor exams. Good luck with your preparations!
- Question: What is GDP?a. Gross Domestic Product
b. General Development Process
c. Government Development Protocol
d. Gross Democratic Progress
Answer: a. Gross Domestic Product
- Question: Which of the following is not a component of GDP?a. Consumption
b. Investment
c. Government expenditure
d. Transfer payments
Answer: d. Transfer payments
- Question: What does CPI stand for?a. Consumer Price Index
b. Central Price Integration
c. Corporate Profit Index
d. Currency Purchasing Income
Answer: a. Consumer Price Index
- Question: Inflation is the increase in the:a. Supply of money
b. Price level of goods and services
c. Exchange rate
d. Unemployment rate
Answer: b. Price level of goods and services
- Question: What is the primary tool used by the Central Bank to control inflation?a. Fiscal Policy
b. monetary policy
c. Exchange Rate Policy
d. Industrial Policy
Answer: b. monetary policy
- Question: Which organization is responsible for issuing currency notes in India?a. Ministry of Finance
b. Reserve Bank of India (RBI)
c. State Bank of India (SBI)
d. Indian Printing Press
Answer: b. Reserve Bank of India (RBI)
- Question: What is the main objective of the Pradhan Mantri Jan Dhan Yojana (PMJDY)?a. Promoting Digital Literacy
b. Financial Inclusion
c. Rural Electrification
d. Skill Development
Answer: b. Financial Inclusion
- Question: Who formulates the monetary policy in India?a. Ministry of Finance
b. Reserve Bank of India (RBI)
c. Planning Commission
d. Securities and Exchange Board of India (SEBI)
Answer: b. Reserve Bank of India (RBI)
- Question: What is the main source of revenue for the Government of India?a. Income Tax
b. Goods and Services Tax (GST)
c. Corporate Tax
d. Both a and b
Answer: d. Both a and b
- Question: What is the full form of SEBI?a. Securities and Exchange Board of India
b. Stock Exchange Bureau of India
c. State Economic and Business Institute
d. Securities and Economic Board of India
Answer: a. Securities and Exchange Board of India
Q11. What is the primary focus of microeconomics?
a) National economy
b) Individual economic agents
c) Global trade
d) Macroeconomic indicatorsAnswer: b
Q12. What is the main function of the Consumer Protection Act?
a) Regulating business practices
b) Promoting competition
c) Safeguarding consumer rights
d) Controlling inflationAnswer: c
Q13. In economics, what does the term “elasticity” refer to?
a) Ability to stretch
b) Responsiveness of quantity demanded to a change in price
c) Firmness of demand
d) Government intervention in marketsAnswer: b
Q14. Which market structure is characterized by a large number of sellers and buyers, homogeneous products, and free entry and exit?
a) Monopoly
b) Oligopoly
c) Perfect competition
d) Monopolistic competitionAnswer: c
Q15. What is the relationship between marginal revenue product (MRP) and value of marginal product (VMP) in perfect competition?
a) MRP > VMP
b) MRP = VMP
c) VMP > MRP
d) None of the aboveAnswer: b
Q16. What is the purpose of the Gross National Product (GNP)?
a) Measure of inflation
b) Measure of the total value of goods and services produced domestically
c) Measure of government spending
d) Measure of international tradeAnswer: b
Q17. What is the primary factor responsible for the decline in the child sex ratio in India?
a) Low fertility rate
b) Female foeticide
c) Incentives for a boy child from the government
d) None of the aboveAnswer: b
Q18. In a mixed economy, what characterizes the public sector?
a) Government ownership and control
b) Private ownership and control
c) Joint ownership by the government and private entities
d) No government interventionAnswer: a
Q19. What is the definition of the poverty line in India?
a) The income level at which one can afford luxury items
b) The minimum income required for a basic standard of living
c) The average income of the population
d) The income level above which one is considered richAnswer: b
Q20. What is the primary objective of the Five-Year Plans in India?
a) Population control
b) Economic development and growth
c) Environmental conservation
d) Political stabilityAnswer: b
Q21. Which of the following is a characteristic of perfect competition?
a) Barriers to entry
b) Homogeneous products
c) Few sellers
d) Price-setting powerAnswer: b
Q22. What is the primary role of Regional Rural Banks (RRBs) in India?
a) Providing microfinance
b) Agricultural credit
c) Urban development
d) Export financingAnswer: b
Q23. What is the primary factor considered while revising the poverty line periodically in India?
a) Political considerations
b) Survey conducted by the National Sample Survey Organisation (NSSO)
c) Inflation rate
d) Stock market performanceAnswer: b
Q24. In economics, what does the term “opportunity cost” represent?
a) The explicit cost of production
b) The cost of the next best alternative forgone
c) The total cost of production
d) The fixed costs of productionAnswer: b
Q25. What is the primary purpose of cooperative banks in India?
a) Maximizing profits for shareholders
b) Providing credit to farmers and small-scale industries
c) Speculative trading in financial markets
d) Funding large corporationsAnswer: b
Q26. In the context of the law of demand, what does a negative income elasticity imply?
a) Normal good
b) Inferior good
c) Luxury good
d) NecessityAnswer: b
Q27. What is the term for a situation where the government’s total expenditures exceed the revenue it generates?
a) Fiscal surplus
b) Fiscal deficit
c) Budget equilibrium
d) Trade deficitAnswer: b
Q28. Which economic concept is measured by the Consumer Price Index (CPI)?
a) Unemployment rate
b) Inflation rate
c) GDP growth rate
d) Interest ratesAnswer: b
Q29. What is the primary objective of fiscal policy?
a) Controlling inflation
b) Reducing unemployment
c) Promoting economic growth
d) Regulating international tradeAnswer: c
Q30. What is the primary function of microfinance institutions?
a) Providing loans to large corporations
b) Offering financial services to low-income individuals
c) Managing government budgets
d) Regulating stock marketsAnswer: b
